amortización
amortization
The Spanish word 'amortización' translates to 'amortization' in English. This term is generally used in economics and finance and it refers to the process of gradually reducing a debt over a set period of time through regularly scheduled payments. Each payment contributes to the repayment of a portion of the principal amount borrowed and the payment of interest on the debt. In business accounting, amortization can also refer to the gradual write-off of the cost of an intangible asset over a period of time.
Example sentences using: amortización
El préstamo se pagará a lo largo de cinco años por amortización.
The loan will be repaid over five years by amortization.
In the context of loans, amortization refers to paying off a loan over time through regular payments. In this example, it is being stated that a loan is going to be repaid over a period of five years using this method.
La amortización debería ser considerada en la evaluación de costos.
Amortization should be considered in the cost evaluation.
In this sentence, amortization refers to the process of gradually writing off the initial cost of an asset. Here, it is being stated that it should be part of the cost evaluation, which could be in the context of a business's financial considerations.
El método de amortización acelerada puede ser beneficioso en ciertos casos.
The method of accelerated amortization can be beneficial in certain cases.
This example is referring to a specific type of amortization method, known as accelerated amortization. In this method, the amount of principal that gets paid off each year is increased, ultimately reducing the total interest costs.